Greece Completed Deal with Private Creditors - 9.3.2012
The Greece’s Ministry of Finance reported today that private sector investors tendered a 152 billion-euro face amount block of bonds issued under Greek law, representing about 85.8% of the outstanding face amount of these bonds (of 177 billion euros). Investors have also tendered another 20 billion-euro face amount block of bonds, issued under foreign laws, or 69% of bonds of this category. Taking into consideration collective action clauses, the total participation rate of private sector will achieve 95.7%, or 197 billion euros, the Ministry said. The face value of this debt will be reduced by 53.5%, but net present value losses may reach almost tree thirds of the initial amount. The euro however remains under pressure at the beginning of the European session, after the tender results have been announced and before the International Swaps and Derivatives Association decides today whether the case may be considered as a “credit event”. Pair EUR/USD dropped from 1.3275 to 1.3212.